Is your money returned if ATO goes bust?

[Will66]

Hi,

Basically have a second house that I’m ready to sell to fund flight training. My biggest worry is the huge instalments before training even starts.

like what happened with BCFS in Bournemouth, what happens to our money if the school ceases training? Is there any way it’s protected? I don’t see there being any company that would insure such an amount in a volatile industry, but surely you couldn’t just be left with a 60k hole in the bank with nothing to show for it?

[VariablePitchP]

Hi,

Basically have a second house that I’m ready to sell to fund flight training. My biggest worry is the huge instalments before training even starts.

like what happened with BCFS in Bournemouth, what happens to our money if the school ceases training? Is there any way it’s protected? I don’t see there being any company that would insure such an amount in a volatile industry, but surely you couldn’t just be left with a 60k hole in the bank with nothing to show for it?

Who knows, probably not in all honesty.

The scenario you’ve hypothesised is another fantastic reason not to go with an integrated sausage factory school. Go Modular, you’ll save £20/30K before we even discuss the risk element.

Modular you’ll pay as you go. May need to block buy 10/15 hours at a time, worst case if they fold the second you’ve paid you’re down £3/4k at best. Annoying but it won’t materially change your life.

And you won’t be treated like a 5 year old.

It’s an endless list of reasons, question answered? :}

[Capt Scribble]

You will be on the list of creditors which are prioritised. If the company owns significant assets that can be sold by the administrator, you might get some money back. The trouble is that a company which is bankrupt is likely to have many creditors and not many assets.

[Beaker_]

I won't repeat what Capt Scribble said, but it's very much spot on. Paying up front with credit card should offer some protection, but rules may vary depending on the country that issued your card and/or the country you're spending in. Some companies may charge a little overhead to reflect the amount the card companies charge them, but this should at least give some piece of mind.

I've personally used the chargeback scheme to get money back from a company, which although was solvent didn't provide the goods I'd paid for, nor were they issuing a refund. It took a couple of months but was pretty straightforward.

Disclaimer: I'm not a financial expert.

[Will66]

Thanks all for the replies,

you’ve basically confirmed what I was suspecting. Very unlikely to ever see the money.

Another thing I thought, is would there be any added protection if doing the integrated degree course?

skyborne for example run their course in conjunction with a two year Bsc course in airline management, at the same time getting your ATPL as normal.

would going with a ATO with conjunction with a degree course offer any other financial stability?

[paco]

DO NOT PAY THE FULL AMOUNT OF ANYTHING UP FRONT!

Pay as you go, maybe even daily, but you will not get anything if they go bust - read up the nonsense on (S)Cabair. When you notice simulators and high priced equipment being moved, watch out....

BCFT just happened to be nicer people than most.

[iggy]

In Spain you wouldn't be getting any refund, definitely. Mostly as smack on the face for complaining too loudly.

[flybyschool]

Hi,

Basically have a second house that I’m ready to sell to fund flight training. My biggest worry is the huge instalments before training even starts.

like what happened with BCFS in Bournemouth, what happens to our money if the school ceases training? Is there any way it’s protected? I don’t see there being any company that would insure such an amount in a volatile industry, but surely you couldn’t just be left with a 60k hole in the bank with nothing to show for it?

several people already answered most of the important points but would like to add one more…

Check the public accounts of the school you want to join. Specially in the UK, those accounts are available for free from Companies House. in other countries, you may need to dig deeper and pay 30 or 40 euros… but I find it very helpful to learn about the financial stability of the flight school of your choice. Brexit and COVID has made a significant impact on most British ATOs but also, some continental Europe ones are going through some bumps.
There is no doubt, imho, that there will be flight schools joining forces.

On the eternal integrated vs modular… I would only add a couple of things
- I don’t understand price differences of one option vs the other. I don’t see why integrated training would cost 30% more to flight schools…to justify that price difference for students. There are options out there that offer integrated at the cost of modular.
- if you need to move from your hometown for your pilot training, I would also factor in duration of training and the costs associated with that longer stay away from home.
- if you need to gain an income during pilot training, go modular! Don’t think you will be able to do integrated and work at the same time.

At the end of the day,you need to make the best decision for you, taking into consideration your own personal circumstances and preferences.
Good luck!!

[777fly]

On this subject, does anyone have any information about a flying school in Florida called 2FlyPro? Any info, good, bad or rumours would be appreciated. Asking for a friend.
Thanks.